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The Philippines is launching a new artificial intelligence initiative to help micro, small, and medium enterprises (MSMEs) overcome barriers to financing and digital operations. On Monday, July 20, the Department of Information and Communications Technology (DICT) and the Land Bank of the Philippines signed a memorandum of understanding to jointly develop AI-enabled tools designed to improve creditworthiness and streamline loan applications for small business owners.
Addressing the Financing Gap for Philippine MSMEs
Small and medium-sized businesses serve as the backbone of the Philippine economy, employing millions of workers and accounting for the majority of the nation’s commercial establishments. Despite this impact, many entrepreneurs struggle to access institutional capital due to informal credit profiles and rigid documentation requirements. According to the DICT, this collaboration aims to address these hurdles by using machine learning to assist in financial planning, document preparation, and internal bank credit assessments.
Did You Know? The DICT’s MSME AI Tech Stack is a mobile-first suite of tools designed to assist entrepreneurs with tasks such as drafting business plans, calculating pricing models, interpreting contracts, and creating marketing strategies, all available in English, Filipino, and various regional languages.
Regional Digital Transformation Under ASEAN Leadership
This initiative is part of a broader strategy led by the Philippines in its capacity as chair of the Association of Southeast Asian Nations (ASEAN). Under the ASEAN Priority Economic Deliverable on AI-Powered MSME Growth, the country is working to make low-cost AI technology accessible across Southeast Asia. DICT Secretary Henry Aguda stated that the agreement reflects the government’s mandate to leverage emerging technology to expand capital access for the local economy.
By moving beyond traditional documentation, the DICT, led by Undersecretary Faye Condez-de Sagon and the agency’s ASEAN Technical Working Group, is attempting to bridge the gap between regional digital agendas and the practical, on-the-ground needs of small business owners.
Next Steps for AI-Enabled Lending
Frequently Asked Questions
The agreement aims to develop AI-enabled digital tools to help micro, small, and medium enterprises improve their creditworthiness, boost productivity, and streamline the process of applying for loans.
The project is spearheaded by the DICT Office of the Chief of Staff, led by Undersecretary Faye Condez-de Sagon, in collaboration with the DICT Emerging Tech Group.
What languages does the MSME AI Tech Stack support?
The interface is designed to be accessible in English, Filipino, and several major regional languages to lower operational barriers for entrepreneurs.
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